By adopting a tough stance on trade with Beijing, President Trump was able to expose the weakness of China’s economy and demonstrate that its growth is far more fragile than it appears. In fact, the tariffs began worrying China’s elite last summer – a clear sign that Beijing was unprepared to cope with Washington’s pressure.
This week, President Xi Jinping even assembled the country’s top leaders, warning them of “serious dangers” and “tests” that will face the ruling Communist party. “The party is facing long-term and complex tests in terms of maintaining long-term rule, reform and opening-up, a market-driven economy, and within the external environment,” Xi said, striking a tone of urgency and concern about the regime’s future.
Meanwhile, Chinese lawmakers have been rushing through a new law designed to alleviate American concerns about intellectual property rights and forced technology transfers, something that President Trump has made a top priority.